We have a strict zero tolerance policy when it comes to money laundering, and fully supports the fight against money launderers. We adhere to the strict guidelines set by the UK’s Joint Money Laundering Steering Group. The UK is also a full member of the Financial Action Task Force (FATF), which is the intergovernmental body whose purpose is to combat money laundering and terrorist financing.
At Zoomtrader, we put certain policies in place, aimed to deter people from laundering money. These policies include:
• Ensuring that our clients have valid proof of identification.
• Ensuring that records of identification information are maintained.
• Checking clients’ names against lists of known or suspected terrorists to ensure that they do not pose a risk.
• Informing clients that any information they provide might be used to help verify their identity.
• Follow all clients’ money transactions closely.
• Not accepting cash, money orders, third party transactions, exchange houses transfer or Western Union transfers.
Money laundering occurs when funds from an illegal or criminal activity are subsequently moved through the financial system in such a way that knowingly makes it appear that the funds have come from legal and legitimate sources.
The act of Money Laundering will usually follow three different stages:
• At first, cash or equivalents are placed into the financial system.
• The money is then transferred or moved to other accounts (e.g. futures accounts). This is normally carried out through a series of financial transactions that have been designed to obscure the origin of the money (e.g. executing trades with little or no financial risk or transferring account balances to other accounts.).
• Finally, these funds are then re-introduced to the economy thus making the funds appear to have come from a legitimate source (e.g. closing a futures account and transferring the funds to a bank account.).
Trading accounts are just one way in which people can launder illicit funds, or hide the true owner of the funds. Trading accounts can be used to execute financial transactions that will help to obscure the origins of the funds.
To prevent any wrongdoing, here at Zoomtrader, we will direct fund withdrawals back to the original source of remittance.
International Anti-Money Laundering requires financial services institutions to be aware of any abuse that could occur in a customer account. They are required to implement a compliance programme that will deter, detect and report any potential suspicious activity.
At Zoomtrader, we have implemented this to protect both us and our clients.
If you have any questions or comments regarding these guidelines, please contact us at [email protected]